16 Accounting: Business Reporting for Decision Making
based primarily on International Public Sector Accounting Standards (IPSAS), modified as necessary for
the New Zealand environment by the XRB. Also within the two-sector reporting regime there are four
tiers. Tier one in both sectors will use the full standards with fewer requirements as the tiers go down.
Public companies listed on the New Zealand Stock Exchange (NZX) must also comply with NZX
listing rules. The listing rules relating to financial reporting typically focus on disclosure of infor mation.
They also include industry-specific disclosure requirements. For example, the NZX requires listed
companies operating in the mining industry to provide quarterly reports with full details of production,
development and exploration activities. For more information about the NZX refer to its website,
Role of professional associations
Many countries have a professional accounting association, and these are tending to become more global
in their operations. In Australia, there are two main professional associations: CPA Australia and Char-
tered Accountants Australia and New Zealand (CAANZ). Other professional associations include the
Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management
Accountants (CIMA). CPA Australia and CAANZ play an important role in regulating Australian com-
panies through stringent regulation of their members and through their input into the standard-setting
process. Members of these bodies are required to ensure that the entities they are involved with comply
with accounting standards when preparing their general purpose financial statements. The professional
bodies have certain pro fessional, ethical and legislative requirements that their members are required to
uphold, such as maintaining independence during an audit, preparing financial statements according to
Australian Accounting Standards, and advising companies on disclosure according to the requirements
of the Corporations Act. The professional bodies regulate the actions and conduct of their members
according to their relevant code of conduct.
CPA Australia
CPA Australia provides education, guidance and support to students, accountants and businesses in
Australia. A certified practising accountant (CPA) is a graduate who has completed an accounting quali-
fication, the CPA program and three years of approved work experience, and who undertakes continuing
professional development each year. To be admitted to the CPA program, you need to have completed
prescribed accounting units in an undergraduate or postgraduate degree from a CPA accredited provider
or enrol in CPA foundation level subjects. A CPA can work in various areas, including public accounting
and public sector accounting.
Chartered Accountants Australia and New Zealand (CAANZ)
The CAANZ provides education to its members and input to debates affecting the accounting profession
and influencing regulators. A chartered accountant (CA) can be employed in a range of organisations to
provide advice on areas such as running a business, future directions and complying with accounting
standards. To become a CA, you need to have completed an approved university degree, passed the CA
program and completed three years of approved work experience.
VALUE TO BUSINESS• Australia adopted Australian equivalents of IFRS from 1 January 2005. The adoption of IFRS helps
ensure compliance with internationally agreed principles, standards and codes of best practice.
• The AASB remains the Australian accounting standard setter under the law and will continue to
issue Australian Accounting Standards.
• The Financial Reporting Council (FRC) is responsible for overseeing the standard-setting process in
Australia. The AASB is responsible for developing accounting standards for application to reporting
entities under the Corporations Act.